MEDIA, Penn.–A federal judge has given preliminary approval to a settlement in a case filed against Wawa over a 2019 data breach.
Under terms of the settlement, up to $9 million in gift cards and cash will be paid out to those whose cards were breached. The breach turned out to be much larger than had been initially believed, with as many as 30-million customer accounts involved.
U.S. District Court Judge Gene E.K. Pratter gave her initial approval of the deal and provisionally certified the class of consumers who would qualify for the settlement. Pratter must still give final approval of the agreement, with a hearing set for January, according to the court.
As a result, Wawa and plaintiffs lawyers can now begin to notify customers of the agreement and give them the chance to submit claims for payments, opt out of the settlement, or object to the deal by November. The settlement would end the class action case filed in U.S. District Court for the Eastern District of Pennsylvania.
Terms of Settlement
According to terms of the settlement, the vast majority of funds Wawa would pay consumers -- up to $8 million in the form of $5 or $15 Wawa gift cards. Up to $1 million more could be used to reimburse consumers with cash payments up to $500, if they can show financial losses linked to the breach.
In addition, Wawa has agreed to spend at least $35 million to improve its cybersecurity.
Lawyers for the plaintiffs have asked for $3.2 million to cover their fees and expenses, administration costs, and cash payments of up to $1,000 for 13 named plaintiffs.
Malware Installed
In the case, hackers accessed Wawa’s point-of-sale systems, installed malware, and tried to sell stolen customer payment card data on the dark web. The breach, which lasted more than nine months, exposed cardholders’ names, numbers, and expiration dates used in-store and at gas pumps at all Wawa stores.
The court overruled objections by lawyers representing Wawa workers who are also customers. Those employees want to assert their own claims and not be locked into the settlement for consumers. They also argued the gift cards -- which they called “coupons” -- provides little value to consumers who no longer live near a Wawa or choose not to shop there, according to news reports.
Pratter ruled that employees’ arguments were premature since they can voice their objections before the final approval hearing.
Notifying Customers
A website where consumers can submit claims must be created by Aug. 30. Wawa also plans to notify customers with signs at gas pumps and payment terminals, information on its website, and a press release, according to court filings. The signs will include a QR code that consumers can scan on their phones to access the settlement website.